Analysis reveals potential of 'second generation' of shared services

Councils have been urged to consider shared service arrangements with other public bodies, after analysis revealed this ‘second generation’ of shared services could achieve the biggest savings.

Findings from the 2015 Shared Services map, published by the Local Government Association, found more than half of all partnerships are saving less than £100,000. The sharing of back office functions was also the most population type of partnership, but offered the smallest savings.

In contrast, shared services with public bodies tends to generate bigger savings. In particular, the map showed the H3 partnership between Hampshire County Council, Hampshire Police and Hampshire Fire and Rescue Services aims to save up to £4m each year by sharing a number of services, including finance, HR, procurement and printing.

The map also found the biggest savings were made in procurement and capital assets, while adding more partners helped achieved greater saving per partner.